FL Adjusters License Practice Exam _ Q&A
Which of the following is NOT one of the four critical elements of a contract?
(A) A mutual understanding and agreement with the terms of the contract.
(B) Written evidence of the agreement and its terms.
(C)A legal purpose.
(D)Consideration, consisting of money or a promise of performance.
Correct Ans ➡ (B) Written evidence of the agreement and its terms.
Assume that five years ago a couple insured their home for [its then appraised
value of] $60,000. Two weeks ago they had a stove fire resulting in an
estimated loss of $15,000 for repairs. The adjuster finds that the value of their
home is now $100,000, but the home is still only insured for $60,000 and has
a deductible of $500. The policy has an 80% coinsurance clause. How much
should the adjuster pay to the couple?
(A) $11,500
(B) $10,875
(C) $14,500
(D) $15,000 Correct Ans ➡ (B) $10,875
Negligence is described as:
(A)Liability imposed by jury verdict.
(B) Liability arising from statutorily imposed liability regardless of fault.
(C) Fault that arises from doing something you shouldn't have done, or not
doing something you should have done.
,(D) Fault imposed on you because you have a greater ability to pay. Correct
Ans ➡ (C) Fault that arises from doing something you shouldn't have done,
or not doing something you should have done.
Describe the coverage's provided in a split limit policy of 10/20/10.
(A) The coverage provides $10,000 in property damage limits, $20,000 in
bodily injury for any one individual, and $10,000 for bodily injuries to each
additional person injured.
(B) The coverage provides $10,000 for bodily injury to one individual,
$20,000 for property damage, and $10,000 for bodily injuries to each
additional person injured.
(C) The coverage provides up to $10,000 of liability protection for bodily
injury to any one individual, an aggregate of $20,000 for all bodily injuries
regardless of how many individuals, and $10,000 for medical payments
coverage for the insured's bodily injury.
(D) The coverage provides up to $10,000 of liability protection for bodily
injury to any one individual, an aggregate of $20,000 for all bodily injuries
regardless of how many individuals, and $10,000 for property damage.
Correct Ans ➡ (D) The coverage provides up to $10,000 of liability
protection for bodily injury to any one individual, an aggregate of $20,000 for
all bodily injuries regardless of how many individuals, and $10,000 for
property damage.
A couple has insured their home for $150,000. A fire ensues and guts their
home, resulting in a total loss. An appraisal of the home prior to loss results in
a value of $120,000, yet the adjuster is required by law to pay the couple
$150,000. This is known as the application of:
(A)The valued policy law.
(B) Payment of policy limits plus a penalty for over-insuring the home.
(C) Replacement cost value
(D) Actual cash value Correct Ans ➡ (A)The valued policy law.
,Which of the following would not be a preferred claims practice or behavior
under Florida's Unfair Insurance Trade Practices Act?
(A) Not responding to an insured's calls because you haven't made up your
mind yet.
(B) Sending a letter to a claimant explaining why you can't pay their claim, or
offering a compromise based on specific facts and legal issues.
(C) Contacting a witness the day after receiving the claim and getting
additional facts about the accident.
(D) Contacting an insured or claimant immediately upon receipt of a claim for
property damage or bodily injury. Correct Ans ➡ (A) Not responding to
an insured's calls because you haven't made up your mind yet.
The doctrine of proximate cause is defined as:
(A) The proximity of a loss to an insured location.
(B) The physical link between one insured loss and another.
(C) The primary reason for an event or accident.
(D) If there is an unbroken chain of events, or series of consequences, flowing
from the initial loss caused by the insured peril to a subsequent loss, the
insured peril causing the initial loss will be considered the "proximate cause"
of the subsequent loss. Correct Ans ➡ (D) If there is an unbroken chain of
events, or series of consequences, flowing from the initial loss caused by the
insured peril to a subsequent loss, the insured peril causing the initial loss will
be considered the "proximate cause" of the subsequent loss.
Once an adjuster is licensed, he or she must maintain a continuing education
requirement. Select from the following an adjuster's compliance requirement
in order to stay licensed:
, (A) A newly licensed adjuster must complete 24 hours of continuing education
in every two year compliance period, of which 5 hours must be taken in a
properly certified 5 Hour Law & Ethics Update course.
(B) An adjuster has to complete 28 hours of continuing education in every two
year compliance requirement in the following categories: 12 Law, 2 Ethics and
14 Optional.
(C) An adjuster must complete 30 hours of continuing education on Florida
law every two years immediately following licensure.
(D) Only independent adjusters are required to take continuing education.
Adjusters who work for insurance companies do not. Correct Ans ➡ (A)
A newly licensed adjuster must complete 24 hours of continuing education in
every two year compliance period, of which 5 hours must be taken in a
properly certified 5 Hour Law & Ethics Update course.
Which of the following is NOT an example of "compensatory damages":
(A) Wages lost by the injured party due to inability to work because of injuries
sustained in an accident.
(B)Pain and suffering
(C) Medical bills for treatment of injuries sustained in an accident.
(D) A jury verdict of $1,000,000 against the defendant to punish them for their
reprehensible actions in causing the loss. Correct Ans ➡ (D) A jury
verdict of $1,000,000 against the defendant to punish them for their
reprehensible actions in causing the loss.
The basic and primary functions of an adjuster are:
(A) Processing and filing mail.
(B) Filing special forms for the insurance company and regulatory bodies.
(C) Investigating, managing, evaluating, reporting on, and negotiating and
disposing of claims.
Which of the following is NOT one of the four critical elements of a contract?
(A) A mutual understanding and agreement with the terms of the contract.
(B) Written evidence of the agreement and its terms.
(C)A legal purpose.
(D)Consideration, consisting of money or a promise of performance.
Correct Ans ➡ (B) Written evidence of the agreement and its terms.
Assume that five years ago a couple insured their home for [its then appraised
value of] $60,000. Two weeks ago they had a stove fire resulting in an
estimated loss of $15,000 for repairs. The adjuster finds that the value of their
home is now $100,000, but the home is still only insured for $60,000 and has
a deductible of $500. The policy has an 80% coinsurance clause. How much
should the adjuster pay to the couple?
(A) $11,500
(B) $10,875
(C) $14,500
(D) $15,000 Correct Ans ➡ (B) $10,875
Negligence is described as:
(A)Liability imposed by jury verdict.
(B) Liability arising from statutorily imposed liability regardless of fault.
(C) Fault that arises from doing something you shouldn't have done, or not
doing something you should have done.
,(D) Fault imposed on you because you have a greater ability to pay. Correct
Ans ➡ (C) Fault that arises from doing something you shouldn't have done,
or not doing something you should have done.
Describe the coverage's provided in a split limit policy of 10/20/10.
(A) The coverage provides $10,000 in property damage limits, $20,000 in
bodily injury for any one individual, and $10,000 for bodily injuries to each
additional person injured.
(B) The coverage provides $10,000 for bodily injury to one individual,
$20,000 for property damage, and $10,000 for bodily injuries to each
additional person injured.
(C) The coverage provides up to $10,000 of liability protection for bodily
injury to any one individual, an aggregate of $20,000 for all bodily injuries
regardless of how many individuals, and $10,000 for medical payments
coverage for the insured's bodily injury.
(D) The coverage provides up to $10,000 of liability protection for bodily
injury to any one individual, an aggregate of $20,000 for all bodily injuries
regardless of how many individuals, and $10,000 for property damage.
Correct Ans ➡ (D) The coverage provides up to $10,000 of liability
protection for bodily injury to any one individual, an aggregate of $20,000 for
all bodily injuries regardless of how many individuals, and $10,000 for
property damage.
A couple has insured their home for $150,000. A fire ensues and guts their
home, resulting in a total loss. An appraisal of the home prior to loss results in
a value of $120,000, yet the adjuster is required by law to pay the couple
$150,000. This is known as the application of:
(A)The valued policy law.
(B) Payment of policy limits plus a penalty for over-insuring the home.
(C) Replacement cost value
(D) Actual cash value Correct Ans ➡ (A)The valued policy law.
,Which of the following would not be a preferred claims practice or behavior
under Florida's Unfair Insurance Trade Practices Act?
(A) Not responding to an insured's calls because you haven't made up your
mind yet.
(B) Sending a letter to a claimant explaining why you can't pay their claim, or
offering a compromise based on specific facts and legal issues.
(C) Contacting a witness the day after receiving the claim and getting
additional facts about the accident.
(D) Contacting an insured or claimant immediately upon receipt of a claim for
property damage or bodily injury. Correct Ans ➡ (A) Not responding to
an insured's calls because you haven't made up your mind yet.
The doctrine of proximate cause is defined as:
(A) The proximity of a loss to an insured location.
(B) The physical link between one insured loss and another.
(C) The primary reason for an event or accident.
(D) If there is an unbroken chain of events, or series of consequences, flowing
from the initial loss caused by the insured peril to a subsequent loss, the
insured peril causing the initial loss will be considered the "proximate cause"
of the subsequent loss. Correct Ans ➡ (D) If there is an unbroken chain of
events, or series of consequences, flowing from the initial loss caused by the
insured peril to a subsequent loss, the insured peril causing the initial loss will
be considered the "proximate cause" of the subsequent loss.
Once an adjuster is licensed, he or she must maintain a continuing education
requirement. Select from the following an adjuster's compliance requirement
in order to stay licensed:
, (A) A newly licensed adjuster must complete 24 hours of continuing education
in every two year compliance period, of which 5 hours must be taken in a
properly certified 5 Hour Law & Ethics Update course.
(B) An adjuster has to complete 28 hours of continuing education in every two
year compliance requirement in the following categories: 12 Law, 2 Ethics and
14 Optional.
(C) An adjuster must complete 30 hours of continuing education on Florida
law every two years immediately following licensure.
(D) Only independent adjusters are required to take continuing education.
Adjusters who work for insurance companies do not. Correct Ans ➡ (A)
A newly licensed adjuster must complete 24 hours of continuing education in
every two year compliance period, of which 5 hours must be taken in a
properly certified 5 Hour Law & Ethics Update course.
Which of the following is NOT an example of "compensatory damages":
(A) Wages lost by the injured party due to inability to work because of injuries
sustained in an accident.
(B)Pain and suffering
(C) Medical bills for treatment of injuries sustained in an accident.
(D) A jury verdict of $1,000,000 against the defendant to punish them for their
reprehensible actions in causing the loss. Correct Ans ➡ (D) A jury
verdict of $1,000,000 against the defendant to punish them for their
reprehensible actions in causing the loss.
The basic and primary functions of an adjuster are:
(A) Processing and filing mail.
(B) Filing special forms for the insurance company and regulatory bodies.
(C) Investigating, managing, evaluating, reporting on, and negotiating and
disposing of claims.
